Health Care Reform

by Dr. Elaina George

When I read that the president had met with CEOs and other top representatives of the largest health insurance companies, hospitals and pharmaceutical companies before healthcare reform was crafted by Congress, I had my doubts about the direction of health care reform confirmed.

I already had reservations about whether we would get true reform when the very members of Congress who were tasked to lead the crafting of the bill had received hundreds of thousand of dollars from the very entities that were the major cause of the problem – the health insurance industry, big PhRMA, and for profit hospitals.

No wonder we have been seeing commercials sponsored by big PhRMA in support of the current health reform bill. It appears it is quid pro quo for the administration’s deal to cap their concessions at 80 billion dollars over 10 years. NY Times Article
If I were a drug company executive or stockholder, I would be happy to support a bill that keeps the government from importing cheaper medication from Canada, and locks it into buying brand medication instead of cheaper generics. (The discounts that Big PhRMA is willing to extend only apply to brand name drugs – the most expensive choice.)

The health insurance companies who also support the healthcare reforms proposed by the President also stand to gain. Although they did not promise to make any concessions, they benefit by receiving more people to pay premiums since there is a mandate that everyone carry insurance (public or private) or face monetary sanctions. Market forces will draw people who are sicker and don’t have the economic means to the public option leaving private insurance companies with members who are younger, healthier and have the ability to pay the premiums.